BILL NUMBER: AB 1331	CHAPTERED  09/11/00

	CHAPTER   375
	FILED WITH SECRETARY OF STATE   SEPTEMBER 11, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 8, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	PASSED THE SENATE   AUGUST 23, 2000
	AMENDED IN SENATE   JUNE 29, 2000
	AMENDED IN SENATE   MAY 25, 2000
	AMENDED IN SENATE   APRIL 4, 2000
	AMENDED IN ASSEMBLY   MAY 19, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Assembly Member Papan

                        FEBRUARY 26, 1999

   An act to amend Section 7507.4 of the Business and Professions
Code, to amend Sections 1748.10, 1748.11, 1748.22, 1788, 1810.20, and
1810.21 of the Civil Code, to amend Section 22 of the Financial
Code, to amend Sections 16265, 76219, and 76245 of the Government
Code, to amend Sections 1067.05, 1067.055, and 11628 of the Insurance
Code, to amend Section 1656.2 of the Vehicle Code, and to repeal
Section 3 of Chapter 569 of the Statutes of 1974, relating to
governmental regulation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1331, Papan.  Governmental regulation.
   Existing law provides for the enactment or establishment of
various acts, funds, or entities, including the Robbins-Rosenthal
Fair Debt Collection Practices Act, the Areias-Robbins Credit Card
Full Disclosure Act of 1986, the Areias-Robbins Retail Installment
Account Full Disclosure Act of 1986, the Robbins-Vuich-Calderon
Financial Institutions Act of 1986, the Robbins Courthouse
Construction Fund, the Robbins-Nielsen County Revenue Stabilization
Act of 1987, the Statham-Robbins Courthouse Construction Fund, the
Robbins-Seastrand Health Insurance Guaranty Association, the
Rosenthal-Robbins Auto Insurance Nondiscrimination Law, the
Robbins-McAlister Financial Responsibility Act, and the Robbins Rape
Evidence Law.
   This bill would rename, or delete the name of, these acts, funds,
and entities excluding reference to the name "Robbins."


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 7507.4 of the Business and Professions Code is
amended to read:
   7507.4.  A licensed repossession agency or its registrants may
make demand for payment in lieu of repossession, if the demand is
made pursuant to an assignment for repossession.
   In making demand upon a debtor for a money payment in lieu of
repossession, the repossessor shall present the demand in compliance
with the Rosenthal Fair Debt Collection Act (Title 1.6C (commencing
with Section 1788) of Part 4 of Division 3 of the Civil Code),
setting forth in the demand only the amount that was specified by the
creditor in the repossession referral and the fees that are properly
chargeable.  Itemized receipts shall be furnished the debtor at the
time payment is received.  Payments received shall forthwith be
transmitted to the creditor, disclosing the full amount of money
received from the debtor in addition to the contract payments.
  SEC. 2.  Section 1748.10 of the Civil Code is amended to read:
   1748.10.  This act shall be known and may be cited as the "Areias
Credit Card Full Disclosure Act Of 1986."
  SEC. 3.  Section 1748.11 of the Civil Code is amended to read:
   1748.11.  (a) Any application form or preapproved written
solicitation for an open-end credit card account to be used for
personal, family, or household purposes which is mailed on or after
October 1, 1987, to a consumer residing in this state by or on behalf
of a creditor, whether or not the creditor is located in this state,
other than an application form or solicitation included in a
magazine, newspaper, or other publication distributed by someone
other than the creditor, shall contain or be accompanied by either of
the following disclosures:
   (1) A disclosure of each of the following, if applicable:
   (A) Any periodic rate or rates that may be applied to the account,
expressed as an annual percentage rate or rates.  If the account is
subject to a variable rate, the creditor may instead either disclose
the rate as of a specific date and indicate that the rate may vary,
or identify the index and any amount or percentage added to, or
subtracted from, that index and used to determine the rate.  For
purposes of this section, that amount or percentage shall be referred
to as the "spread."
   (B) Any membership or participation fee that may be imposed for
availability of a credit card account, expressed as an annualized
amount.
   (C) Any per transaction fee that may be imposed on purchases,
expressed as an amount or as a percentage of the transaction, as
applicable.
   (D) If the creditor provides a period during which the consumer
may repay the full balance reflected on a billing statement which is
attributable to purchases of goods or services from the creditor or
from merchants participating in the credit card plan, without the
imposition of additional finance charges, the creditor shall either
disclose the number of days of that period, calculated from the
closing date of the prior billing cycle to the date designated in the
billing statement sent to the consumer as the date by which that
payment must be received to avoid additional finance charges, or
describe the manner in which the period is calculated.  For purposes
of this section, the period shall be referred to as the "free period"
or "free-ride period."  If the creditor does not provide such a
period for purchases, the disclosure shall so indicate.
   (2) A disclosure that satisfies the initial disclosure statement
requirements of Regulation Z.
   (b) A creditor need not present the disclosures required by
paragraph (1) of subdivision (a) in chart form or use any specific
terminology, except as expressly provided in this section.  The
following chart shall not be construed in any way as a standard by
which to determine whether a creditor who elects not to use such a
chart has provided the required disclosures in a manner which
satisfies paragraph (1) of subdivision (a).  However, disclosures
shall be conclusively presumed to satisfy the requirements of
paragraph (1) of subdivision (a) if a chart with captions
substantially as follows is completed with the applicable terms
offered by the creditor, or if the creditor presents the applicable
terms in tabular, list, or narrative format using terminology
substantially similar to the captions included in the following
chart:


           THE FOLLOWING INFORMATION IS PROVIDED PURSUANT
          TO THE AREIAS CREDIT CARD FULL DISCLOSURE ACT OF
                                1986:
           INTEREST RATES, FEES, AND FREE-RIDE PERIOD FOR
              PURCHASES UNDER THIS CREDIT CARD ACCOUNT
       ------------------------------------------------------
       '          '          ' ANNUAL-  '        '          '
       '          '          '  IZED    '        '          '
       '          ' VARIABLE ' MEMBER-  '        '          '
       '          '   RATE   '  SHIP    '        '          '
       ' ANNUAL   '  INDEX   ' OR PAR-  '        '  FREE    '
       '  PER-    '   AND    '  TICI-   ' TRANS- '  RIDE-   '
       ' CENTAGE  '  SPREAD  ' PATION   ' ACTION ' PERIOD   '
       ' RATE (1) '   (2)    '  FEE     '  FEE   '  (3)     '
       '__________'__________'__________'________'__________'
       '          '          '          '        '          '
       '          '          '          '        '          '
       '          '          '          '        '          '
       '          '          '          '        '          '
       '          '          '          '        '          '
       '__________'__________'__________'________'__________'

   (1) For fixed interest rates.  If variable rate, creditor may
elect to disclose a rate as of a specified date and indicate that the
rate may vary.
   (2) For variable interest rates.  If fixed rate, creditor may
eliminate the column, leave the column blank, or indicate "No" or
"None" or "Does not apply."
   (3) For example, "30 days" or "Yes, if full payment is received by
next billing date" or "Yes, if full new balance is paid by due date."

   (c) For purposes of this section, "Regulation Z" has the meaning
attributed to it under Section 1802.18, and all of the terms used in
this section have the same meaning as attributed to them in federal
Regulation Z (12 C.F.R. Sec. 226.1 et seq.).  For the purposes of
this section, "open-end credit card account" does not include an
account accessed by a device described in paragraph (2) of
subdivision (a) of Section 1747.02.
   (d) Nothing in this section shall be deemed or construed to
prohibit a creditor from disclosing additional terms, conditions, or
information, whether or not relating to the disclosures required
under this section, in conjunction with the disclosures required by
this section.
   (e) If a creditor is required under federal law to make any
disclosure of the terms applicable to a credit card account in
connection with application forms or solicitations, the creditor
shall be deemed to have complied with the requirements of paragraph
(1) of subdivision (a) with respect to those application forms or
solicitations if the creditor complies with the federal disclosure
requirement.  For example, in lieu of complying with the requirements
of paragraph (1) of subdivision (a), a creditor has the option of
disclosing the specific terms required to be disclosed in an
advertisement under Regulation Z, if the application forms or
solicitations constitute advertisements in which specific terms must
be disclosed under Regulation Z.
   (f) If for any reason the requirements of this section do not
apply equally to creditors located in this state and creditors not
located in this state, then the requirements applicable to creditors
located in this state shall automatically be reduced to the extent
necessary to establish equal requirements for both categories of
creditors, until it is otherwise determined by a court of law in a
proceeding to which the creditor located in this state is a party.
   (g) All application forms for an open-end credit card account
distributed in this state on or after October 1, 1987, other than by
mail, shall contain a statement in substantially the following form:

   "If you wish to receive disclosure of the terms of this credit
card, pursuant to the Areias Credit Card Full Disclosure Act of 1986,
check here and return to the address on this application."
   A box shall be printed in or next to this statement for placement
of such a checkmark.
   However, this subdivision does not apply if the application
contains the disclosures provided for in this title.
   (h) This title does not apply to any application form or written
advertisement or an open-end credit card account where the credit to
be extended will be secured by a lien on real or personal property or
both real and personal property.
   (i) This title does not apply to any person who is subject to
Article 10.5 (commencing with Sec. 1810.20) of Chapter 1 of Title 2.

  SEC. 4.  Section 1748.22 of the Civil Code is amended to read:
   1748.22.  (a) On and after October 1, 1987, issuers of charge
cards shall clearly and conspicuously disclose in any charge card
application form or preapproved written solicitation for a charge
card mailed to a consumer who resides in this state to apply for a
charge card, whether or not the charge card issuer is located in this
state, other than an application form or solicitation included in a
magazine, newspaper, or other publication distributed by someone
other than the charge card issuer, the following information:
   (1) Any fee or charge assessed for or which may be assessed for
the issuance or renewal of the charge card, expressed as an
annualized amount.  The fee or charge required to be disclosed
pursuant to this paragraph shall be denominated as an "annual fee."
   (2) The charge card does not permit the charge cardholder to defer
payment of charges incurred by the use of the charge card upon
receipt of a periodic statement of charges from the charge card
issuer.
   (3) Any fee that may be assessed for an extension of credit to a
charge cardholder where the extension of credit is made by the charge
card issuer, and is not a credit sale and where the charge
cardholder receives the extension of credit in the form of cash or
where the charge cardholder obtains the extension of credit through
the use of a preprinted check, draft, or similar credit device
provided by the charge card issuer to obtain an extension of credit.
This fee shall be denominated as a "cash advance fee" in the
disclosure required by this paragraph.
   (b) A charge card issuer shall be conclusively presumed to have
complied with the disclosure requirements of subdivision (a) if the
table set out in subdivision (b) of Section 1748.11 is completed with
the applicable terms offered by the charge card issuer in a clear
and conspicuous manner and the completed table in subdivision (b) of
Section 1748.11 is then provided to the person invited to apply for
the charge card as a part of or in material which accompanies the
charge card application or written advertisement which invites a
person to apply for a charge card.
   The charge card issuer shall include as part of table set out in
subdivision (b) of Section 1748.11 the following sentences in the
boxes or in a footnote outside of the boxes that relate to the
interest rate disclosure:  "This is a charge card which does not
permit the charge cardholder to pay for purchases made using this
charge card in installments.  All charges made by a person to whom
the charge card is issued are due and payable upon the receipt of a
periodic statement of charges by the charge cardholder."
   The inclusion or exclusion of an expiration date with table set
out in subdivision (b) of Section 1748.11 or the use of footnotes in
the boxes of the table to set out the information required to be
disclosed by this section outside of the boxes of the table set out
in subdivision (b) of Section 1748.11 shall not affect the conclusive
presumption of compliance pursuant to this subdivision.  If a charge
card issuer does not offer or require one of the selected attributes
of credit cards in the table set out in subdivision (b) of Section
1748.11 the charge card issuer shall employ the phrase in the
appropriate box or in the appropriate footnote "Not offered" or "Not
required" or a substantially similar phrase without losing the
conclusive presumption of compliance with the requirements of
subdivision (a).  If one of the selected attributes of charge cards
required to be disclosed pursuant to subdivision (a) is not
applicable to the charge card issuer, the charge card issuer may
employ in the appropriate box or in the appropriate footnote outside
of the box in the table set out in subdivision (b) of Section 1748.11
the phrase "Not applicable" or a substantially similar phrase
without losing the conclusive presumption of compliance with the
requirements of subdivision (a).
   (c) Nothing in this section shall be deemed or construed to
prohibit a charge card issuer from disclosing additional terms,
conditions, or information, whether or not relating to the
disclosures required under this section by subdivision (a) or in
connection with the disclosure provided in subdivision (b), in
conjunction with the disclosures required by this section.
   (d) If the charge card issuer offers to the charge cardholder any
program or service under which the charge cardholder may elect to
access open-end credit, the charge card issuer shall provide to the
charge cardholder, before the charge cardholder has the right to
access that credit, the initial disclosure statement required by
Regulation Z, as defined in subdivision (c) of Section 1748.10.
   (e) All charge card application forms distributed in this state on
or after October 1, 1987, other than by mail, shall contain a
statement in substantially the following form:
   "If you wish to receive disclosure of the terms of this credit
card, pursuant to the Areias Charge Card Full Disclosure Act of 1986,
check here and return to the address on this application."
   A box shall be printed in or next to this statement for placing
such a checkmark.
   However, this subdivision does not apply if the application
contains the disclosures provided for in this title.
  SEC. 5.  Section 1788 of the Civil Code is amended to read:
   1788.  This title may be cited as the  Rosenthal Fair Debt
Collection Practices Act.
  SEC. 6.  Section 1810.20 of the Civil Code is amended to read:
   1810.20.  This article shall be known and may be cited as the
"Areias Retail Installment Account Full Disclosure Act of 1986."
  SEC. 7.  Section 1810.21 of the Civil Code is amended to read:
   1810.21.  (a) Any application form or preapproved written
solicitation for a credit card issued in connection with a retail
installment account which is mailed on or after October 1, 1987, to a
retail buyer residing in this state by or on behalf of a retail
seller, whether or not the retail seller is located in this state,
other than an application form or solicitation included in a
magazine, newspaper, or other publication distributed by someone
other than the retail seller, shall contain or be accompanied by
either of the following disclosures:
   (1) A disclosure of each of the following, if applicable:
   (A) Any periodic rate or rates that will be used to determine the
finance charge imposed on the balance due under the terms of a retail
installment account, expressed as an annual percentage rate or
rates.
   (B) Any membership or participation fee that will be imposed for
availability of a retail installment account in connection with which
a credit card is issued expressed as an annualized amount.
   (C) If the retail seller provides a period during which the retail
buyer may repay the full balance reflected on a billing statement
which is attributable to purchases of goods or services from the
retail seller without the imposition of additional finance charges,
the retail seller shall either disclose the minimum number of days of
that period, calculated from the closing date of the prior billing
cycle to the date designated in the billing statement sent to the
retail buyer as the date by which that payment must be received to
avoid additional finance charges, or describe the manner in which the
period is calculated.  For purposes of this section, the period
shall be referred to as the "free period" or "free-ride period."  If
the retail seller does not provide such a period for purchases, the
disclosure shall so indicate.
   (2) A disclosure that satisfies the initial disclosure statement
requirements of Regulation Z (12 C.F.R. 226.6).
   (b) In the event that an unsolicited application form is mailed or
otherwise delivered to retail buyers in more than one state, the
requirements of subdivision (a) shall be satisfied if on the
application form or the soliciting material there is a notice that
credit terms may vary from state to state and which provides either
the disclosures required by subdivision (a) or an address or phone
number for the customer to use to obtain the disclosure.  The notice
shall be in boldface type no smaller than the largest type used in
the narrative portion, excluding headlines, of the material
soliciting the application.  Any person responding to the notice
shall be given the disclosures required by subdivision (a).
   (c) A retail seller need not present the disclosures required by
paragraph (1) of subdivision (a) in chart form or use any specific
terminology, except as expressly provided in this section.  The
following chart shall not be construed in any way as a standard by
which to determine whether a retail seller who elects not to use the
chart has provided the required disclosures in a manner which
satisfies paragraph (1) of subdivision (a).  However, disclosures
shall be conclusively presumed to satisfy the requirements of
paragraph (1) of subdivision (a) if a chart with captions
substantially as follows is completed with the applicable terms
offered by the retail seller, or if the retail seller presents the
applicable terms in tabular, list, or narrative format using
terminology substantially similar to the captions included in the
following chart:


         THE FOLLOWING INFORMATION IS PROVIDED PURSUANT
         TO THE AREIAS RETAIL INSTALLMENT ACCOUNT FULL
                   DISCLOSURE ACT OF 1986:
            CREDIT CARD TERMS VARY AMONG RETAIL
         SELLERS--SELECTED TERMS FOR PURCHASES UNDER THIS
          RETAIL INSTALLMENT ACCOUNT ARE SET OUT BELOW
      ____________________________________________________
      '               '                '                  '
      '    PERIODIC   '                '                  '
      '     RATES     '    ANNUAL      '    FREE-RIDE     '
      '   (as APRs)   '     FEES       '     PERIOD       '
      '_______________'________________'__________________'
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '
      '               '                '                  '
      '_______________'________________'__________________'

   (d) For purpose of this section, "Regulation Z" has the meaning
attributed to it under Section 1802.18, and all of the terms used in
this section have the same meaning as attributed to them in federal
Regulation Z (12 C.F.R. Sec. 226.1 et seq.).
   (e) Nothing in this section shall be deemed or construed to
prohibit a retail seller from disclosing additional terms,
conditions, or information, whether or not relating to the
disclosures required under this section, in conjunction with the
disclosures required by this section.  Notwithstanding subdivision
(g) of Section 1748.11, a retail seller that complies with the
requirements of Section 1748.11 shall be deemed to have complied with
the requirements of this section.
   (f) If a retail seller is required under federal law to make any
disclosure of the terms applicable to a retail installment account in
connection with application forms or solicitations, the retail
seller shall be deemed to have complied with the requirements of
paragraph (1) of subdivision (a) with respect to those application
forms or solicitations if the retail seller complies with the federal
disclosure requirement.
   (g) If the disclosure required by this section does not otherwise
appear on an application form or an accompanying retail installment
agreement distributed in this state on or after October 1, 1987,
other than by mail, the application form shall include a statement in
substantially the following form:
   "If you wish to receive disclosure of the terms of this retail
installment account, pursuant to the Areias Retail Installment
Account Full Disclosure Act of 1986, check here and return to the
address on this form."
   A box shall be printed in or next to this statement for placing
such a checkmark.
   (h) This article does not apply to (1) any application form or
preapproved written solicitation for a retail installment account
credit card where the credit to be extended will be secured by a lien
on real or personal property, or both real and personal property,
(2) any application form or written solicitation which invites a
person or persons to apply for a retail installment account credit
card and which is included as part of a catalog which is sent to one
or more persons by a creditor in order to facilitate a credit sale of
goods offered in the catalog, (3) any advertisement which does not
invite, directly or indirectly, an application for a retail
installment account credit card, and (4) any application form or
written advertisement included in a magazine, newspaper, or other
publication distributed in more than one state by someone other than
the creditor.
  SEC. 8.  Section 22 of the Financial Code is amended to read:
   22.  Notwithstanding any other provision of this code, Chapter 10
(commencing with Section 10000) of Division 2 shall be known and may
be cited as the Vuich-Calderon Financial Institutions Act of 1986.
  SEC. 9.  Section 16265 of the Government Code is amended to read:
   16265.  This chapter shall be known and may be cited as the
"Bergeson-Costa-Nielsen County Revenue Stabilization Act of 1987."
  SEC. 10.  Section 76219 of the Government Code is amended to read:

   76219.  (a) The Courthouse Construction Fund established in Los
Angeles County pursuant to Section 76100 shall be known as the
Courthouse Construction Fund.
   (b) All courtroom construction in the County of Los Angeles which
utilizes moneys from the Courthouse Construction Fund or moneys
borrowed and owed against the Courthouse Construction Fund shall be
within the boundaries of the San Fernando Valley Statistical Area and
the Los Cerritos Municipal Court District, until the time that the
County of Los Angeles has spent a total of at least forty-three
million dollars ($43,000,000) on courthouse construction within the
San Fernando Valley Statistical Area and at least eight million
dollars ($8,000,000) within the Los Cerritos Municipal Court District
for the Bellflower Courthouse.
   (c) All courtroom construction in the County of Los Angeles which
utilizes moneys from the Courthouse Construction Fund or moneys
borrowed against the Courthouse Construction Fund shall be within the
boundaries of the San Fernando Valley Statistical Area, within the
boundaries of the Los Cerritos Municipal Court District, within the
boundaries of the East Los Angeles Municipal Court District, within
the Downey Municipal Court District, within the community of
Hollywood, or within the West Los Angeles Branch of the Los Angeles
Municipal Court District, until the time that the County of Los
Angeles has fulfilled the requirements of subdivision (b) and has
additionally spent at least sixteen million five hundred thousand
dollars ($16,500,000) on courthouse construction within the East Los
Angeles Municipal Court District, has spent at least ten million
dollars ($10,000,000) on courthouse construction within the Downey
Municipal Court District, has commenced construction on a courthouse
with at least six courtrooms in the West San Fernando Valley, has
commenced construction on a courthouse with at least two courtrooms
in the community of Hollywood, and has commenced construction on a
courthouse for the West Los Angeles Branch of the Los Angeles
Municipal Court District.
   (d) All courtroom construction in the County of Los Angeles which
utilizes moneys from the Courthouse Construction Fund or moneys
borrowed against the Courthouse Construction Fund shall be within the
boundaries of the San Fernando Valley Statistical Area, within the
boundaries of the Los Cerritos Municipal Court District, within the
boundaries of the East Los Angeles Municipal Court District, within
the Downey Municipal Court District, within the community of
Hollywood, within the West Los Angeles Branch of the Los Angeles
Municipal Court District, within the Pasadena Judicial District,
within the Southeast Municipal Court District, within the South Bay
Judicial District, within the Santa Monica Judicial District, within
the Antelope Valley Judicial District, or within the Long Beach
Judicial District until the time that the County of Los Angeles has
fulfilled the requirements of subdivisions (b) and (c), and has
commenced construction of new facilities or the expansion of existing
facilities for the municipal courts in the Pasadena Judicial
District, the north and south branches of the Southeast Municipal
Court District, and the South Bay Judicial District, has commenced
construction on a courthouse for the superior court with at least 18
courtrooms in the North Hollywood Redevelopment Project Area of the
City of Los Angeles or immediately adjacent thereto, and has
commenced construction of new facilities for the superior and
municipal courts in the Santa Monica Judicial District, the Antelope
Valley Judicial District, and the Long Beach Judicial District.
   (e) For purposes of this section, the San Fernando Valley
Statistical Area includes all land within the San Fernando Valley
Statistical Area (as defined in subdivision (e) of Section 11093) as
well as the City of San Fernando, the City of Hidden Hills, and the
unincorporated areas of Los Angeles County located west of the City
of Los Angeles, east and south of the Ventura County line, and north
of a line extended westerly from the southern boundary of the San
Fernando Valley Statistical Area (as defined in subdivision (c) of
Section 11093).
       (f) The moneys of the Courthouse Construction Fund together
with any interest earned thereon shall be payable only for courtroom
construction and land acquisition as authorized in subdivision (b)
and, after the requirement of subdivision (b) has been met, shall be
payable only for courtroom construction and land acquisition as
authorized in subdivision (c) and, after the requirements of
subdivisions (b) and (c) have been met, shall be payable only for
courtroom construction and land acquisition as authorized in
subdivision (d).
   (g) Deposits into the fund shall continue through and including
either (1) the 25th year after the initial calendar year in which the
surcharge is selected or (2) whatever period of time is necessary to
repay any borrowings made by the county to pay for construction
provided for in this section, whichever time is longer.
   (h) The resolution adopted by the Board of Supervisors of the
County of Los Angeles on September 2, 1980, stating that the
provisions of Chapter 578 of the Statutes of 1980 are necessary to
the establishment of adequate courtroom facilities in the County of
Los Angeles shall be deemed a resolution stating that the provisions
of this section are necessary to the establishment of adequate
courtroom facilities in the county, and shall satisfy the
requirements of this section.
  SEC. 11.  Section 76245 of the Government Code is amended to read:

   76245.  (a) The fund established in Shasta County pursuant to
Section 76200 shall be known as the Statham Courthouse Construction
Fund.
   (b) The fund established in Shasta County pursuant to Section
76101 shall be known as the Statham Criminal Justice Facilities
Construction Fund.
  SEC. 12.  Section 1067.05 of the Insurance Code is amended to read:

   1067.05.  (a) A nonprofit legal entity to be known as the
California Life and Health Insurance Guarantee Association shall
exist as a result of the merger of the Seastrand Health Insurance
Guaranty Association with and into the California Life Insurance
Guaranty Association pursuant to Section 1067.055.  All member
insurers shall be and remain members of the association as a
condition of their authority to transact insurance in this state.
The association shall perform its functions under the plan of
operation established and approved under Section 1067.09 and shall
exercise its powers through a board of directors established under
Section 1067.06.  For purposes of administration and assessment, the
association shall maintain the following three accounts:
   (1) The life insurance account.
   (2) The annuity account.
   (3) The health insurance account.
   (b) The association shall come under the immediate supervision of
the commissioner and shall be subject to the applicable provisions of
the insurance laws of this state.  Meetings or records of the
association may be opened to the public upon majority vote of the
board of directors of the association.
  SEC. 13.  Section 1067.055 of the Insurance Code is amended to
read:
   1067.055.  In order to provide for the merger of the Seastrand
Health Insurance Guaranty Association with and into the California
Life Insurance Guaranty Association, the following shall apply:
   (a) Notwithstanding the repeal of the California Life Insurance
Guaranty Association Act and the Seastrand Health Insurance Guaranty
Association Act, the Seastrand Health Insurance Guaranty Association
shall, effective immediately prior to that repeal, be merged with and
into the California Life Insurance Guaranty Association, which shall
then be known as the California Life and Health Insurance Guarantee
Association.
   (b) Notwithstanding the repeal of the California Life Insurance
Guaranty Association Act and the Seastrand Health Insurance Guaranty
Association Act, but subject to the last sentence of this
subdivision, all of the following shall apply:
   (1) The association shall succeed, without other transfer, to all
the rights, powers, privileges, assets, and property of each of the
California Life Insurance Guaranty Association and the Seastrand
Health Insurance Guaranty Association, which for the purposes of this
section shall be referred collectively as the merging associations.
The association shall be subject to all debts, obligations, and
liabilities of each merging association in the same manner as if the
association had itself incurred them, in each case under the law in
effect prior to the effective date of this article, as those rights,
powers, privileges, obligations, debts, and liabilities may be
amended and restated in this article, including, without limitation,
the extension of coverage with respect to unallocated contracts as
provided in subparagraph (D) of paragraph (2) of subdivision (b) of
Section 1067.02, and in each case with respect to member insurers
that became impaired insurers or insolvent insurers prior to the
effective date of this article and after October 1, 1990.  Without
limiting the generality of the foregoing, the association shall
succeed to (A) all collected, uncollected, or unbilled assessments of
the merging associations, (B) all cash, bank accounts, and accrued
interest of the merging associations, (C) all rights, powers,
privileges, and obligations of the merging associations under any
contracts or commitments of the merging association, (D) all
subrogations, assignments, and creditor rights and interests of the
merging associations, and (E) all rights, powers, privileges, and
obligations of each of the trusts established on December 31, 1993,
by each of the merging associations as settlor.
   (2) All rights of creditors and all liens upon the property of
each of the merging associations shall be preserved unimpaired,
provided that the liens upon property of a merging association shall
be limited to the property affected thereby immediately prior to the
effective date of this article.
   (3) Any action or proceeding pending by or against a merging
association may be prosecuted to judgment, which shall bind the
association, or the association may be proceeded against or be
substituted in its place.
   Notwithstanding the other provisions of this subdivision, all
debts, obligations, and liabilities of a merging association that
were to be paid out of a specified account of the merging association
shall be paid solely out of the assets of that merging association
that were available to that merging association to pay those debts
and liabilities, including, without limitation, collected,
uncollected, or unbilled assessments, and any and all subrogation,
assignment, and creditor rights, or out of assets in the same type of
account of the association.
   (c) Notwithstanding any other provision to the contrary in this
article:
   (1) It is the intent of this section to preserve rights, powers,
privileges, assets, property, debts, obligations, and liabilities of
each of the merging associations, and not to provide contractholders
and policyholders, or their respective payees, beneficiaries, or
assignees, with duplicative rights, powers, privileges, assets, or
property.
   (2) Accordingly, no contractholder and policyholder, and no
contractholder's or policyholder's payee, beneficiary, or assignee,
shall be entitled to (A) a recovery from the association that is
duplicative of a previous recovery from either of the merging
associations, or the trust established by either merging association,
or (B) a recovery from the association on account of a claim against
either of the merging associations where the association is liable
with respect to a claim under the same policy or contract under this
article.
  SEC. 14.  Section 11628 of the Insurance Code is amended to read:
   11628.  (a) No admitted insurer, licensed to issue and issuing
motor vehicle liability policies as defined in Section 16450 of the
Vehicle Code, shall fail or refuse to accept an application for that
insurance, to issue that insurance to an applicant therefor, or issue
or cancel that insurance under conditions less favorable to the
insured than in other comparable cases, except for reasons applicable
alike to persons of every race, language, color, religion, national
origin, ancestry, or the same geographic area; nor shall race,
language, color, religion, national origin, ancestry, or location
within a geographic area of itself constitute a condition or risk for
which a higher rate, premium, or charge may be required of the
insured for that insurance.
   As used in this section "geographic area" means a portion of this
state of not less than 20 square miles defined by description in the
rating manual of an insurer or in the rating manual of a rating
bureau of which the insurer is a member or subscriber.  In order that
geographic areas used for rating purposes may reflect homogeneity of
loss experience, a record of loss experience for the geographic area
shall include the breakdown of actual loss experience statistics by
ZIP Code area (as designated by the United States Postal Service)
within each geographic area for family owned private passenger motor
vehicles and lightweight commercial motor vehicles, under 11/2-ton
load capacity, used for local service or retail delivery, normally
within a 50-mile radius of garaging, and which are not part of a
fleet of five or more motor vehicles under one ownership.  A record
of loss experience for the geographic area, including that
statistical data by ZIP Code area, shall be submitted annually to the
commissioner for examination by each insurer licensed to issue and
issuing motor vehicle liability policies, motor vehicle physical
damage policies, or both.  Loss experience shall include separate
loss data for each type of coverage, including liability or physical
damage coverage, underwritten.  That report shall include the insurer'
s statewide loss ratio, loss adjustment expense ratio, expense ratio,
and combined ratio on its assigned-risk business.  An insurer may
satisfy its obligation to report statistical data under this
subdivision by providing its loss experience data and statewide
expense ratio and combined ratio on its assigned-risk business to a
rating or advisory organization for submission to the commissioner.
This data shall be made available to the public by the commissioner
annually after examination.  However, the data shall be released in
aggregate form by ZIP Code in order that no individual insurer's loss
experience for any specific geographic area be revealed.
Differentiation in rates between geographical areas shall not
constitute unfair discrimination.
   All information reported to the department pursuant to this
subdivision shall be confidential.
   As used in this section, (1) "language" means the inability to
speak, read, write, or comprehend the English language, (2)
"dependents" shall include, but not be limited to, issue regardless
of generation, and (3) "spouse" shall be determined without regard to
current marital status.
   (b) The commissioner may require insurers with combined ratios on
statewide assigned-risk business that are 10 percent above the mean
combined ratio for all plan participants to also report the
following:
   (1) The reason for the excessive ratio.
   (2) A plan for reducing the ratio, and when the reduction can be
expected to occur.  The commissioner may require insurers subject to
this subdivision to provide periodic reports on the progress in
reducing the combined ratio.
   (c) No admitted insurer, licensed to issue and issuing motor
vehicle liability insurance policies as defined in Section 16450 of
the Vehicle Code, shall fail or refuse to accept an application for
that insurance, refuse to issue that insurance to an applicant
therefor, or cancel that insurance solely for the reason that the
applicant for that insurance or any insured is employed in a specific
occupation, or is on active duty service in the Armed Forces of the
United States.
   Nothing in this section shall prohibit an insurer from:
   (1) Considering the occupation of the applicant or insured as a
condition or risk for which a higher rate or discounted rate may be
required or offered for coverage in the course and scope of his or
her occupation.
   (2) Charging a deviated rate to any classification of risks
involving a specific occupation, or grouping thereof, if the rate
meets the requirements of Chapter 9 (commencing with Section 1850) of
Part 2 of Division 1 and is based upon actuarial data which
demonstrates a significant actual historical differential between
past losses or expenses attributable to the specific occupation, or
grouping thereof, and the past losses or expenses attributable to
other classification of risks.  For purposes of compiling that
actuarial data for a specific occupation or grouping thereof, a
person shall be deemed employed in the occupation in which that data
is compiled if:  (A) the majority of his or her employment during the
previous year was in the occupation, or (B) the majority of his or
her aggregate earnings for the immediate preceding three-year period
were derived from the occupation, or (C) the person is a member in
good standing of a union which is an authorized collective bargaining
agent for persons engaged in the occupation.
   Nothing in this section shall be construed to include in the
definition of "occupation" any status or activity which does not
result in remuneration for work done or services performed, or
self-employment in a business operated out of an applicant's or
insured's place of residence or persons engaged in the renting,
leasing, selling, repossessing, rebuilding, wrecking, or salvaging of
motor vehicles.
   (d) Nothing in this section shall limit or restrict the ability of
an insurer to refuse to accept an application for or refuse to issue
or cancel such insurance for the reason that it is a commercial
vehicle or based upon the consideration of a vehicle's size, weight,
design, or intended use.
   (e) It is the intent of the Legislature that actuarial data by
occupation may be examined for credibility by the commissioner on the
same basis as any other automobile insurance data which he or she is
empowered to examine.
   (f) (1) Except as provided in Article 4 (commencing with Section
11620), nothing in this section or in Article 10 (commencing with
Section 1861.01) of Chapter 9 of Part 2 of Division 1 or in any other
provision of this code, shall prohibit an insurer from limiting the
issuance or renewal of insurance as defined in subdivision (a) of
Section 660 to persons who engage in, or have formerly engaged in,
governmental or military service or segments of categories thereof,
and their spouses, dependents, and former dependents or spouses.
   (2) The term "military service" includes, but is not limited to,
officer and warrant officer candidates, cadets or midshipmen at a
service academy, cadets or midshipmen in advance Reserve Officer
Training Corps programs or on Reserve Officer Training Corps program
scholarships, National Guard officer candidates, students in
government-sponsored precommissioning programs, and foreign military
officers while on temporary duty in the United States.
   (g) This section shall be known and may be cited as the "Rosenthal
Auto Insurance Nondiscrimination Law."
  SEC. 15.  Section 1656.2 of the Vehicle Code is amended to read:
   1656.2.  The department shall prepare and publish a printed
summary describing the penalties for noncompliance with Section
16000, which shall be included with each motor vehicle registration,
registration renewal, and transfer of registration and with each
driver's license and license renewal.  The printed summary may
contain, but is not limited to, the following wording:
      "IMPORTANT FACTS ABOUT ENFORCEMENT OF CALIFORNIA'S COMPULSORY
FINANCIAL RESPONSIBILITY LAW


   The McAlister Financial Responsibility Act requires every driver
to maintain proof of valid automobile liability insurance, bond, cash
deposit, or self-insurance which has been approved by the Department
of Motor Vehicles.    You must provide proof of financial
responsibility after you are cited by a peace officer for a traffic
violation.  The act requires that you provide the officer with the
name of your insurer and the policy identification number.  Your
insurer will provide written evidence of this number.  The back of
your vehicle registration form contains a space for writing this
information.  Failure to prove your financial responsibility can
result in fines of up to two hundred forty dollars ($240) and loss of
your driver's license.  Falsification of proof can result in fines
of up to five hundred dollars ($500) or 30 days in jail, or both.
Under existing law, if you are involved in an accident that results
in damages over five hundred dollars ($500) or in any injury or
fatality, you must file a report of the accident with the Department
of Motor Vehicles within 10 days of the accident.  If you fail to
file a report or fail to provide evidence of financial responsibility
on the report, your driving privilege will be suspended for one
year.  Your suspension notice will notify you of the department's
action and of your right to a hearing.  Your suspension notice will
also inform you that if you request a hearing, it must be conducted
within 30 days of your written request, and that a decision is to be
rendered within 15 days of the conclusion of the hearing."
  SEC. 16.  Section 3 of Chapter 569 of the Statutes of 1974 is
repealed.
